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Berry Is facing some harvesing decisions in order to decide hOw many tons berries to harvest and supply to local markets. They face the following situation: Their FIXED COSTS in terms of existing harvesting tools, land rents, etc. is: $20 Their main variable cost is to hire farmworkers, whom they must pay as per the region's minimum living wage laws at $15 per worker hour. They are able to coordinate production given their existing infrastructure at the following cost structure. Berry harvests are measured inletric Tons harvested per worker hour. Green Gardens Berry Farm Quantity of Farmworker (quantity in metric tons harvested) hours needed for Harvest 1 2 15 9 14 20

Berry Is facing some harvesing decisions in order to decide hOw many tons berries to harvest and supply to local markets. They face the following situation: Their FIXED COSTS in terms of existing harvesting tools, land rents, etc. is: $20 Their main variable cost is to hire farmworkers, whom they must pay as per the region's minimum living wage laws at $15 per worker hour. They are able to coordinate production given their existing infrastructure at the following cost structure. Berry harvests are measured inletric Tons harvested per worker hour. Green Gardens Berry Farm Quantity of Farmworker (quantity in metric tons harvested) hours needed for Harvest 1 2 15 9 14 20

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter8: Cost Analysis
Section: Chapter Questions
Problem 5E
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The real question is not the ones I posted those are what you need the real question is at the profit maximizing level of production. A)Total revenue will be , and profit will be 

Green Gardens Berry Farms is facing some harvesting décisions in order to decide how many tons of berries to harvest and supply to local markets. They face the following situation: Their FIXED COSTS in terms of existing harvesting tools, land rents, etc. is: $20 Their main variable cost is to hire farmworkers, whom they must pay as per the region's minimum living wage laws at $15 per worker hour. They are able to coordinate production given their existing infrastructure at the following cost structure. Berry harvests are measured in vletric Tons harvested per worker hour. Green Gardens Berry Farm Quantity of Farmworker (quantity in metric tons harvested) hours needed for Harvest 1 3 19 4 14 5 20 2.
Transcribed Image Text:Green Gardens Berry Farms is facing some harvesting décisions in order to decide how many tons of berries to harvest and supply to local markets. They face the following situation: Their FIXED COSTS in terms of existing harvesting tools, land rents, etc. is: $20 Their main variable cost is to hire farmworkers, whom they must pay as per the region's minimum living wage laws at $15 per worker hour. They are able to coordinate production given their existing infrastructure at the following cost structure. Berry harvests are measured in vletric Tons harvested per worker hour. Green Gardens Berry Farm Quantity of Farmworker (quantity in metric tons harvested) hours needed for Harvest 1 3 19 4 14 5 20 2.
The MARKET PRICE for berries is currently at $75 per metric ton. Green Berry farms is currently looking at harvesting 2 metric tons. What should they do? O The total cost of berries is too high, they should REDUCE production o The marginal cost of berries at this level is lower than price, and they should EXPAND production. O They are making a profit! They should maintain their production level! Question 3 The market price is still S75per metric ton. So Green Berry farm thought they should IncreasE production to 5 metric tons. Is this a good decision? No. The marginal.cost.at this production level is higher than price. Ihey would be better off cutting back production in order to maximize profits. Yes. they are making a prof Question 4 How many metric tons of berries would Green Berries Farm produce in order to Maximnize Profits
Transcribed Image Text:The MARKET PRICE for berries is currently at $75 per metric ton. Green Berry farms is currently looking at harvesting 2 metric tons. What should they do? O The total cost of berries is too high, they should REDUCE production o The marginal cost of berries at this level is lower than price, and they should EXPAND production. O They are making a profit! They should maintain their production level! Question 3 The market price is still S75per metric ton. So Green Berry farm thought they should IncreasE production to 5 metric tons. Is this a good decision? No. The marginal.cost.at this production level is higher than price. Ihey would be better off cutting back production in order to maximize profits. Yes. they are making a prof Question 4 How many metric tons of berries would Green Berries Farm produce in order to Maximnize Profits
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